acc101 principles of accounting group assignment

ACC101- PRINCIPLES OF ACCOUNTING GROUP ASSIGNMENTGROUP 3:TRẦN PHI LONGNGUYỄN THỊ DIỆU LINHDƯƠNG DUY NHẬTNGUYỄN TRẦN TÂM NHƯTRẦN ĐINH GIA BẢOTRẦN ĐÌNH THÁIABBA ABDALLAH RILWANINSTRUCTOR:

ACC101- PRINCIPLES OF ACCOUNTING

GROUP ASSIGNMENT

GROUP 3:

TRẦN PHI LONG NGUYỄN THỊ DIỆU LINH DƯƠNG DUY NHẬT NGUYỄN TRẦN TÂM NHƯ TRẦN ĐINH GIA BẢO TRẦN ĐÌNH THÁI ABBA ABDALLAH RILWAN

INSTRUCTOR: MISS NGUYỄN MAI HOÀNG VY

customers has grown To accommodate the growth, the accounting system is modified to set up separate accounts for each customer The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019 Rick Connor decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account This change allows the company to continue using the existing chart of accounts

1 Journal entries

January

4 Wages payable

($125×4)

500

Unearned computer service revenue 1,500

17 Account payable 5,800

Merchandise inventory

($5,800×1%)

5,800

Cash

($5800−$58)

20 Sales return and allowances 500

Sales discount

($4,700×1%)

47

February

3 Account payable

($9,000−$496)

8,504

March

11 Repair expenses – computer 960

2 Partial work sheet

WOOLIE SOLUTIONS March 31, 2020 Unadjusted Trial Balance

Adjustments Adjusted

Trial Balance Account

No.

12

8

555 1.110

201 Account Payable

318

403 Computer Service

Revenue

676 Mileage

677 Miscellaneous

Expense

Expense

Computer

Depreciation

– Office

Equipment

Depreciation

– Computer

Equipment

Computer

Service

Revenue

612 Depreciation

– Office

Equipment

613 Depreciation

– Computer

Equipment

Supplies

Expense

414 Sales returns

and

allowances

discount

502 Cost of goods

106.1 Alex’s

Engineering Co.

Corporation

106.6 Gogi Co

106.7 Delta Co

106.9 Dean, Inc

3 Income statement

Income Statement

For year ended

Revenue

Expense

Miscellaneous expense

4 statement of owner’s equity

Woolie Solutions Statement of owner's equity

For the three months ended March 31, 2022

Add: Net income 18.833

124.193

5 Classified balance sheet March 31, 2020.

ASSET

Current assets

Ks Inc 5,800

Plant assets

Less: Accumulated depreciation – office equipment 800 7,200

Less: Accumulated depreciation – computer equipment (2,500) (17,500)

Total assets 120,268

Liabilities and shareholder’s equity

Shareholder’s equity

6 Assume responsibility

Gross Margin Ratio Gross sale = Computer Services revenue + Sales = 25.307 + 19.240 = 44.457

Net sales = Gross sales – Sales returns and allowances – Discount = 44.457 - 500 - 47

= 43.910

Debt to assets Ratio Total Debt = 875

Total Assets = 120.268

Debt to assets Ratio = Total debt/ Total assets = 875/120.268 = 0.73

Profit margin

Net income = 18.833

Net sale = 43.910

Profit margin = Net income/ Net sales = 18.833/43.910 = 0.43

Explain computation:

The cost of goods sold makes up much of a merchandiser’s expenses Without sufficient gross profit, a merchandiser will likely fail Users often compute the gross margin ratio to help understand this relation It differs from the profit margin ratio in that it excludes all costs except cost of goods sold The gross margin ratio (also called gross profit ratio) is defined as gross margin (net sales minus cost of goods sold) divided by net sales